UK firm registers judgment against Pierse parent

A BRITISH engineering services firm has registered a judgment for almost €100,000 against the parent of Pierse Contracting, the building business that went to the wall last year with a €200 million deficit.

Company office records show that G5 Services, based in Kent in southern England, has registered a judgment for €99,000 against Birmayne, Pierse’s parent at the end of last month. G5 provides electrical, mechanical and other engineering services to the construction industry. It has a turnover of about £7 million.

Last November, the High Court appointed Simon Coyle of Mazars to Pierse Contracting and a related business after the companies withdrew an application to be placed in examinership.

It had a deficit of €212 million and owed unsecured creditors, mainly trade and suppliers, over €50 million. At the time, the company’s lawyers conceded in court that it was unlikely that it would be able to pay unsecured creditors.

Bank of Ireland, one of the main secured creditors, which was owed €35 million, appointed David Carson of Deloitte as its receiver to the company to protect its interests.

Since then, a number of banks have appointed receivers to various projects and businesses that they had funded and in which Pierse was either a partner or the main backer.

When Pierse applied for interim examinership, its figures showed current assets were €129.46 million on paper, but they were only likely to realise €26.8 million.

Much of this was due to inter-company loans which came to almost €75 million.